Big UK chain buys Village Press oil

A New Zealand olive oil producer - Hawkes Bay-based The Village Press - has cut a deal to supply its oil to big British supermarket chain Tesco.

The company will supply 13,200 bottles - each of 500ml - for 500 Tesco stores, doubling its previous annual exports to Britain, where the olive oil market is valued at £48 million ($132 million).

The Village Press last year sold 12,000 bottles to another supermarket chain, Sainsbury's.

Its total exports this year are expected to be 36,000 litres to Britain and six other markets: United States, Canada, Thailand, Singapore, Australia and the Pacific Islands, and it also supplies Air New Zealand, Singapore Airlines and Thai Air Catering.

The Village Press chief executive Wayne Startup said the Tesco deal reinforced the company's international credibility.

He said it showed it could supply a competitively priced, quality extra virgin olive oil in large quantities all year round.

"Our ability to supply year-round is in contrast to the problems that Spain and Italy are experiencing in maintaining supply because of their recent droughts.

"New Zealand olive oil is making its mark in other countries because of its unique and intense flavour, a result of our maritime climate," he said.

The Village Press operates olive grove syndicates with 30,000 trees on 45 hectares in Hawkes Bay and buys olives from five independent growers in that region and another six in Marlborough.

Production is expected to jump from 40,000 litres last year - nearly a third of the overall New Zealand harvest of 150,000 litres - to 60,000 litres this year.

- NZPA